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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / JULY 28, 2003; VOL. 2 NO. 30

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Breaking News - General:

Packeteer Announces Record Q2 Financial Results

Packeteer Inc, a leading provider of Internet application performance infrastructure systems, announced revenues and results of operations for the quarter ended June 30, 2003.

Net revenues for the second quarter 2003 were $17.5 million, compared with $16.8 million for the first quarter 2003, an increase of 4%. Net revenues for the second quarter 2002 were $13.1 million. Net income for the second quarter 2003 was $2.6 million or $0.08 per share. This compares to first quarter 2003 net income of $2.1 million or $0.07 per share. The second quarter 2002 net income was $499,000 or $0.02 per share.

The balance sheet at the end of Q2 2003 remained strong. Cash, cash equivalents and investments of $76.3 million at June 30, 2003 were $8.0 million higher than the balances of $68.3 million at March 31, 2003. Accounts receivable of $7.7 million at June 30, 2003 represented 40 days sales outstanding compared to 41 days sales outstanding at March 31, 2003. Total inventories of $1.9 million at June 30, 2003 were consistent with the March 31, 2003 balance.

"I am very pleased with our financial performance in the second quarter 2003. We continued to deliver record revenues and profits for the fourth consecutive quarter," stated Dave Cote, President and CEO. "I believe the value our customers place on our application traffic management systems is primarily responsible for our sequential revenue and profit growth. The introduction last quarter of PacketShaper Xpress continues to add to our systems capabilities and improve the level of control customers have over their network applications. We are focusing the business towards continued revenue and profit growth in a still difficult economy."

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